As bond yields have been hit heavily by a dual combination of safety bets amid the banking turmoil and market players pricing in a less aggressive Fed, that has helped to put a bid under the yen over the last few weeks. The supposedly more dovish rate hike by the Fed last week also isn't helping and we saw USD/JPY come down to test the 130.00 mark on Friday.
For now, the figure level is holding but that arguably owes to traders also drawing a key line in the sand in the bond market as noted here.
At this point in time, USD/JPY price action really only comes down to one thing and that is how the bond market reacts:
